Seize the opportunities of climate change. Sustainable investments.
Climate change has long-term consequences, including for investors. Comprehensive investment solutions are making it easier to switch to sustainable investments. This is because a sustainable portfolio serves as an ideal starting point for you to benefit from the opportunities presented by this change.
Rapid growth in the ESG investment solution market
Climate change is one of the greatest challenges of our time. It also entails risks for investors – both through new regulations and technological change, and through direct losses caused by climate change in the decades to come. "The good news, though, is that we are on our way to a sustainable economy," says Guillaume Bonnel, Head of Sustainable and Impact Products at Credit Suisse.
This is where big opportunities exist, especially for high net worth investors who react promptly. Several key industries are likely to benefit from an increasingly decarbonized economy, such as energy, wastewater treatment, and agriculture. "The market is booming. It's currently experiencing exponential growth," explains Guillaume Bonnel. "Now is the time for investors to design a decarbonizing portfolio."
Designing a decarbonizing portfolio
Structuring your own portfolio to be prepared for climate change, for example to be "climate transition ready," is no simple undertaking, however. It is particularly tricky for wealthy individuals and Single Family Offices (SFOs) who are invested in many different asset classes and markets. According to Daniel Imhof, Global Head of Investment Management at Credit Suisse, "You have to set precise goals and find ways to measure your success." A climate-transition-ready portfolio can either be built step by step, or all at once using an integrated investment solution like Credit Suisse's innovative Climate Focus Mandate.
This investment solution is designed to generate attractive risk-adjusted returns. It does so through exposure to companies that have clearly demonstrated a strategy to mitigate and/or adapt to climate change. It’s a unique discretionary investment solution, with the strategic asset allocation being custom-tailored together with the client. Clients also get direct access to a senior portfolio manager and the sustainability experts at Credit Suisse, and receive comprehensive reporting on a regular basis, e.g. on the ESG indicators for their investments, so that they can assess the climate impact of their portfolio.
Sustainable investments in five thematic areas
In order to ensure the client’s portfolio is climate transition ready, the Climate Focus Mandate invests in five different themes linked to climate mitigation and/or adaption: green energy, smart cities, health & inclusion, agriculture & food, and water & ocean. "These five different sub-themes offer a comprehensive approach for investing in sustainability and climate change," explains Daniel Imhof.
Sustainable investments with a robust investment process
Credit Suisse implements this mandate based on its well-structured investment process. Our advisors develop the strategic asset allocation in close discussion with each individual client so that it reflects their specific investment and climate objectives. At the same time, Credit Suisse experts review the portfolio's tactical focus and the actual implementation of the strategy regularly using a professional selection of the best investment instruments available. Our transparent risk management and regular reporting on the portfolio's climate impact allow for targeted benchmarking.
"Investors can use this climate-transition-ready portfolio to support climate leaders, to contribute to mitigating climate change, and to simultaneously obtain the returns needed to achieve their financial goals," says Daniel Imhof.